Emerging
companies looking to IPO typically lack the in-house experience and
sophistication required to successfully handle the increasingly complex nuances
of the overall process and are turning in ever greater numbers to the services
provided by stock transfer agents to navigate the choppy seas of an initial
public offering in today’s markets. Established public companies are also
increasingly seeking out the services of stock transfer agents in order to
handle the tedious and equally complex aspects of ongoing stock accounting
requirements, like stock ownership verification and signature guarantee
tracking. Transfer agents have become an indisputably vital part of success for
emerging public companies when it comes to handling the aforementioned tasks
and oftentimes seemingly herculean amount of clerical activities required,
which range from registrations and handling EDGAR/XBRL filings, to organizing
annual meetings and election processes.
While most
stock transfer agents generally offer the same suites of services, what
differentiates operators in this space is a powerful mix of industry
experience, highly-trained personnel and the kind of always-on customer service
required to really handle the evolving daily needs of a given company.
Particularly for SME class companies, the amount of work required to manage the
various aspects of an IPO or ongoing record keeping and shareholder information
maintenance, is often much better/more cost-effectively handled by a third
party stock transfer agent, which specializes in the practice and knows all the
tricks of the trade.
One of the
stock transfer agent firms which has successfully differentiated itself over
the years is Continental Stock Transfer & Trust. Continental not only
provides clients with 24/7 access to their deep bench of senior-level experts,
but something the big transfer agent shops simply cannot provide, custom-tailored
solutions. Not just any customized solutions either; Continental Stock Transfer
& Trust just rang the bell on their 50th year in the game and they have the
track record of customized service, as well as industry accolades, to back up
that enviable milestone.
Continental
Stock Transfer & Trust just pulled down the prestigious TALON Award
(Transfer Agent Leader Overall North America) for the fourth year in a row,
clearly evincing the company’s status as the top dog transfer agent in North
America when it comes to customer satisfaction. The TALON Award, which is the
industry’s only performance survey the spans the entire gamut, also clearly
signifies Continental Stock Transfer & Trust’s value proposition, with the
most reasonable fees, as well as controls on out-of-pocket expenses, to be had
anywhere.
Music to
the ears of SMEs looking to up their own game and the award also indicates to
potential clients that Continental’s technology is second to none. The
company’s online, client-based issuer tool, ControlBook Reporting for instance,
allows on-demand access to share controls, irrespective of stock class and
provides real-time situational awareness, as well as operability, whether day
or night. The company’s embracing of crowdfunding and their partnership with numerous
crowdfunding portals like 99 Funding (www.99funding.com), highlighted by their
extensive comment letter to the SEC commending them for their JOBS Act and
crowdfunding exemption (SA1933 Section 4[a][6]) rules (designed to reduce
associated regulatory costs for raising capital, while preserving key investor
protections), further shows how far ahead of the curve Continental is.
Of
particular note is the company’s guidance in their comment letter to the SEC on
how essential a registered transfer agent for Title II and III issuers is, in
order to protect investors. Similarly, their suggestion that transfer agents
lower their pricing models in order to accommodate fledgling companies, in
light of the simplified record keeping, is trend-setting in its conception.
Such trend-setting industry guidance helps clear the way for crowdfunding
issuers who want to maximize their business models and still afford rigorous
record keeping.
The
comprehensive services provided by Continental have been instrumental for companies
like Energy XXI (NASDAQ:EXXI), an independent oil and gas E&P with primary
operations in the Gulf of Mexico/Gulf Coast. Given EXXI’s dual listing on the
London Stock Exchange’s international market for smaller growing companies, AIM
(which requires monthly reconciliations), as well as tasks like employee
stock-based compensation stock issuances and preferred stock conversions, it
has been essential to have a company like Continental on board to “keep
everything straight,” according to EXXI’s Senior VP, Hugh Menown.
These same
service capabilities, delivered by an exceptionally experienced, deep bench of
experts who are at the beck and call of clients, has helped companies like
Pioneer Natural Resources (NYSE:PCD), one of the most active drillers in the
Permian/Eagle Ford’s Spraberry/Wolfcamp oil field in Texas, handle all their
daily transfer agent needs. PCD’s Manager, Corporate Communications and Public
Affairs, Sam Hicks, has even gone on record thanking Continental for their
exemplary transfer agent service to Pioneer. Continental’s relationship with
Pioneer stretches back to PCD’s inception in1997 and Hicks has been keen to
point out how out how the tailored servicing, with additional special services
provided on an ad hoc basis (without a bunch of costly add-ons as would be the
case with most other transfer agents), has really been a high value addition to
the company’s overall business model, allowing them to prosper and continue
gaining momentum with each passing year.
Visit the
Continental Stock Transfer & Trust for more information:
www.ContinentalStock.com
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